Google, Schmidt have the ear of Obama administration

By Frank Davies

Mercury News Washington Bureau

Posted:
11/18/2008 05:06:38 PM PST

Updated:
11/18/2008 09:33:13 PM PST

WASHINGTON — Google is poised to play a more influential role in government with the incoming Obama administration. Two Google leaders have Barack Obama's ear and may land prominent positions on his team or continue as close advisers in the private sector:

CEO Eric Schmidt, who campaigned for Obama, is now one of his economic advisers. Schmidt gave a speech Tuesday on technology and government that drew a packed house to an auditorium in downtown Washington.

Dan Reicher, who oversees energy initiatives at Google, worked on a clean-tech group that raised about $2 million for the Obama campaign. With strong environmental credentials, Reicher has also worked with industry, co- founded an equity fund in clean energy and is seen as a leading contender to become energy secretary.

In a wide-ranging talk on technology and the economy, openness in government, energy and climate change, Schmidt was careful to say he was not speaking for Google or the Obama team. While Schmidt endorsed Obama, Google maintained neutrality and offered its tools to all candidates.

Schmidt has also said he is not interested in a government job, such as the post of chief technology officer that Obama plans to create.

But it's also clear that many of Schmidt's views mesh with Google's overall goals and reflect Obama's thinking.

Schmidt said Congress and the new administration should "take this economic crisis and deal with it as an opportunity" and spend more on scientific research, clean technology and energy efficiency. Any economic stimulus package, he said, must include incentives for greater use of alternative fuels and conservation.

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Reicher made similar and even more specific recommendations a few months ago. He favors, for example, a $2 billion program that would create jobs to weatherize 10 million homes for low-income Americans. In a congressional hearing, Reicher also said the nation must invest in a "smart grid" to better monitor and manage energy use.

Despite the prominence of Schmidt and Reicher, and a growing Washington office, Google is still playing catch-up in traditional lobbying. Giant telecoms such as AT&T and large entertainment companies — firms that often oppose Google on Internet issues — have well-established ties to major law firms and lobbyists.

Google's big tech rival, Microsoft, spent $6.9 million on lobbying so far this year, compared with Google's $2 million, according to the Center for Responsive Politics.

Microsoft's political action committee contributed $1.7 million this year, compared with $282,000 from Google.

Microsoft's aggressive lobbying effort and fierce opposition to Google's advertising partnership with Yahoo probably helped persuade Google earlier this month to back away from the deal. That constituted a major victory for Microsoft.

But Google may have an advantage with the new administration because Obama and his team "seem to have a cultural and psychological affinity with Google's approach to issues," said Ed Black, president of the Computer and Communications Industry Association, of which Google, Microsoft and Yahoo are members.

Obama's team also has ties to more established industries, "but Obama identifies with innovative companies and dynamic newcomers" such as Google, he added.

Schmidt, who grew up in Washington, has a keen interest in government and serves as chairman of the New America Foundation, a centrist think tank whose staffers and ideas are known by the Obama team. New America sponsored his talk Tuesday.

Schmidt spoke of the Internet as a tool for more transparency and participation in government, including shaping legislation. "There's a vast amount of government information that is not searchable, and we can help solve that," he said, speaking of Google applications that government agencies could use.

"The Internet was the big winner in the 2008 election, and Obama used it skillfully," Schmidt added.